Foreign Ties Cloud Billion-Dollar New Jersey E-ZPass Deal

BySophia Johannson

New Jersey lawmakers are demanding answers about a $1.73 billion E-ZPass contract awarded through what critics describe as a secretive process to a company with alleged ties to China. The contract, one of the largest ever awarded by the New Jersey Turnpike Authority, has sparked national security concerns and questions about government transparency as toll rates continue to climb across the state.

An investigation by The Jersey Vindicator revealed the Turnpike Authority selected TransCore LP despite its bid being $250 million higher than the next-lowest qualified bidder, according to the report. The decision shifts control of the state’s electronic tolling system from Newark-based Conduent, Inc., which had managed E-ZPass operations for 22 years.

Photo Source: khairil77/DepositPhotos

Security Concerns Over Foreign Ownership

“I would rather the Chinese knew what I was watching on TikTok than have the Chinese monitoring my car going up and down the New Jersey Turnpike,” said former U.S. Senator Robert Torricelli, who serves as a consultant for Conduent, in a recent television interview cited by Shore News Network.

TransCore is owned by Singapore Technologies Engineering (ST Engineering), a company that reportedly has business connections to China. These links have prompted serious concerns about potential data security risks, with officials questioning whether sensitive information about drivers’ movements could be compromised.

State Senator Michael Testa expressed disbelief at the decision, stating: “It boggles my mind that the NJTA will allow this to happen. We must keep New Jerseyans data & privacy SAFE from the CCP and any foreign adversary.” He pledged to explore legislative options to address the situation and prevent similar contracts in the future.

Questions About Procurement Process

Beyond the security concerns, the contract has raised significant questions about transparency in the procurement process. Investigative journalist Jeff Pillets, who broke the story, told NJ Spotlight News that there appeared to be “a veil of secrecy and a lack of public documentation over the process in which this contract was awarded.”

The Turnpike Authority defended its decision, claiming TransCore was selected because it “had the best experience and offered the best solutions to customer service” issues that have plagued the E-ZPass system. However, critics question why the authority would pay a $250 million premium over Conduent’s bid of $1.479 billion.

“This is maybe the biggest contract that the Turnpike Authority has ever awarded,” Pillets noted. “It’s not really chump change.”

Political Fallout Intensifies

The controversy has quickly become a bipartisan issue. Congressman Jeff Van Drew called the decision “reckless” and urged the Turnpike Authority to reconsider, emphasizing that “America’s security must always come first.”

Several state legislators have called for hearings to examine the contract award process and evaluate potential security vulnerabilities. Some have suggested the contract should be rescinded entirely, while others are pushing for additional oversight measures to protect driver data.

The timing of the controversy is particularly sensitive, as New Jersey drivers have experienced toll increases of more than 40% on the Turnpike over the past few years. The most recent hike took effect in January 2025, with the Turnpike Authority citing infrastructure improvement needs as justification.

Technology and Infrastructure Security

The situation highlights growing concerns about foreign involvement in critical American infrastructure. E-ZPass systems track millions of vehicle movements daily across 19 states, creating vast databases of travel patterns and potentially sensitive information.

“The issue isn’t just about who processes toll transactions,” explained cybersecurity expert Alicia Moran of the Digital Infrastructure Security Institute. “These systems contain movement data that could potentially reveal patterns about government officials, military personnel, or sensitive facilities. The security implications extend well beyond privacy concerns.”

TransCore, which operates toll systems in numerous states and countries, has defended its security protocols and corporate governance. The company maintains that all data will remain on U.S. servers and that appropriate safeguards are in place to prevent unauthorized access or transfer of information.

What’s Next for New Jersey Drivers

For average New Jersey drivers, the immediate impact remains unclear. The transition to TransCore is scheduled to begin later this year, with full implementation expected by early 2026. The Turnpike Authority has promised improved customer service and more reliable technology under the new contract.

However, as scrutiny intensifies and lawmakers demand answers, the fate of the $1.73 billion agreement remains uncertain. State officials have indicated that a formal review of the procurement process and security protocols may be forthcoming, potentially delaying or altering the implementation timeline.

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